Uniswap, a decentralized trading protocol, has today announced its upcoming version, Uniswap v4, marking a significant milestone in its journey. The team behind Uniswap views it as a core element of the DeFi (Decentralized Finance) infrastructure and is committed to a transparent and participatory development process.
"We see Uniswap as core financial infrastructure & think it should be built in public with space for community feedback and contribution," the team said in a series of Tweets. An early implementation of the code can be found on GitHub.
Uniswap v4 will introduce a transformative feature called “hooks,” which allows for the customization of liquidity pools. "Hooks add entirely new functionality to pools, such as dynamically adjusting fees or creating new order types," the team added. These innovative features aim to make Uniswap more adaptable and flexible than ever before.
To demonstrate the capabilities of these hooks, Uniswap has provided a few examples:
Time-weighted average market maker (TWAMM)
Customized on-chain oracles
On-chain limit orders
These samples can be found on their GitHub page.
By allowing each pool to be customizable, Uniswap anticipates a diverse array of pools to be formed in the near future. To handle a world with multiple pools, Uniswap has made several architectural improvements. One of these major enhancements is having v4 pools live in a single contract. "v4 pools will live in a single contract, reducing the cost of pool creation by 99%. When combined with a new 'flash accounting' system, this greatly reduces the cost of routing across many pools," they explained.
These developments in Uniswap v4 will make it easier for developers to take advantage of the security and network effects of Uniswap, without the need to build their own Automated Market Maker (AMM) from scratch. "We want Uniswap v4 to bring fast, expressive AMM innovation within one powerful ecosystem," the team said.
Developers are encouraged to brainstorm innovative hook designs and integrations. The Uniswap team invites feedback and ideas for the core code, with a shared vision of building Uniswap v4 together.
For a more in-depth look at these exciting developments, the Uniswap team has published a draft of the technical whitepaper detailing their vision for v4.
Disclaimer: This article is fictional and does not reflect any actual events or partnerships. The information provided is purely for informational purpose.